Govt Releases Regulations for New Companies Law

5 months ago

Shipping containers are stacked and moved at the Asia World Port in Yangon on July 2, 2014.

YANGON — The government issued new regulations on Monday to help firms navigate the Myanmar Companies Law, which takes effect on Aug. 1, with instructions on online registration, corporate constitutions, capital structures and more.

Prepared by the Directorate of Investment and Company Administration (DICA), the regulations also instruct existing firms on how to re-register, provide a model constitution and include rules on maintaining registers and records and regulations for resident directors.

Passed by the Parliament in November, the Companies Law is seen to be one of the major legislative achievements of the current government, replacing and adopting elements of the 1914 Companies Act and the 1950 Special Companies Act.

Once it takes effect, all existing companies will have to re-register electronically with Myanmar Companies Online within six months.

According to the new regulations, companies must ensure that all forms and documents filed electronically are properly executed and also kept in hard copy together with the company’s registers and indexes at its registered office.

A company may be refused registration if it fails to complete the required forms in line with the instructions, fails to attach additional documents asked for, or fails to pay the requisite fees.

If an existing company does not re-register online within the six months, it will be struck from the register and dissolved.

Companies and corporations that choose to reregister must provide their registered office address and the full name, date of birth, gender, nationality and address of every director and secretary.

DICA Director U Myo Min told The Irrawaddy earlier this month that companies also need to update their lists of members, directors, mortgages and charges and review the new duties and liabilities for directors.

According to DICA, there are more than 50,000 local companies and 7,000 foreign companies currently registered in Myanmar.